Households are being urged to check their council tax bands and claim discounts, as Martin Lewis's MoneySavingExpert site highlights potential savings of thousands of pounds. Meanwhile, Prime Minister Andy Burnham is reportedly considering major changes to the system.
Council tax band checks
Martin Lewis said up to 400,000 homes in England and Scotland may be in the wrong council tax band. He advised a "neighbours check" to compare bands with similar properties online. If a home is in a higher band than neighbours, a valuation check based on 1991 property values can confirm the error.
"If you're in too high a band and you successfully challenge it, not only does your band get dropped, but you're entitled to a backdated payout from the date that you moved in," Lewis said. He added that for many people, this can be thousands of pounds.
Political reforms
Andy Burnham criticised the current system for making some households pay higher rates than larger homes in London. Number 10 denied reports that he is actively considering replacing council tax and stamp duty with a 0.48% annual charge on property values or a land value tax.
According to the Fairer Share Campaign, a flat-rate annual charge could save households in areas like Hartlepool about £950 a year. Labour MP Jonathan Brash called for "wholesale reform," noting that band A homes in Hartlepool pay nearly 2.5 times more than in Westminster.
Carer discount errors
An investigation by MoneySavingExpert found that one in five council websites in England and Wales displayed incorrect qualifying criteria for the live-in Carer Council Tax discount, potentially since 2013. This may have deterred up to five million unpaid carers from claiming, with typical missed savings of £500 to £1,000 per year.
All councils have now corrected their information. Martin Lewis urged carers who previously thought they were ineligible to check again and apply for a backdated discount. "Carers are some of society's most unsung heroes," he said.
